Online Experience in Last-Mile Delivery and Future Purchase Intentions in Pakistan: The Role of Customer Satisfaction

Abstract

In the new market environment, customer experience has become a source of competitive advantage. The purpose of this paper is to understand the role of post-purchase logistic services on customer satisfaction and future purchase decision in Pakistan. For this, we modified the Cao et. al. (2018) model and established the empirical validity of Pakistani customers. We proposed that customers’ overall online experience affects the customers' perception of logistical services of last-mile delivery. They included Availability of Final Delivery Facilities (AFDF), Return (R), Shipping (S), and Tracking (T). These logistic services would enhance customer satisfaction (CS), which would in turn affect Future Purchase Intention (FPI). Using a validated survey instrument, 200 respondents in Karachi are collected who do online shopping. The research model is analyzed using confirmatory factor analysis and structural equation modeling. The structural equation analysis of the study found that online experiences positively affect all four logistic experiences, each of these four has a significant positive effect on customer satisfaction, and onwards to future purchase intention. Hence, the positive effect of online experience on FPI is positively mediated by R, S, T, and AFDF, in the first order, then by CS in the second order. Hence, the understanding of last-mile delivery enhances the relationship here between perception and the efficiency of the customer's online shopping experience as well as the satisfaction of customers. Technology has provided a greater degree of importance to the end-user sector for transportation carriers.